Dangote Predicts Exchange Rate Could Hit N1,100/$1 in 2026
Africa’s richest man and President of the Dangote Group, Aliko Dangote, has projected that the Nigerian naira could strengthen significantly against the US dollar, potentially hitting N1,100 to $1 within 2026.
Speaking on Wednesday, Dangote expressed strong optimism about the national currency’s recovery, attributing the potential appreciation to the full operationalization of the Dangote Petroleum Refinery and its ripple effects on the country’s foreign exchange market.
The business mogul argued that the 650,000-barrel-per-day refinery is a game-changer for Nigeria’s economy.
By ending the nation’s decades-long reliance on imported refined petroleum products, the refinery is expected to plug a massive hole in the country’s forex expenditure.
“The pressure on the naira will ease significantly as we stop the importation of petrol and other refined products. We are looking at a situation where the naira could appreciate to N1,100 to the dollar before the end of the year,” Dangote stated.
He emphasized that the reduction in demand for dollars to fund fuel imports, which historically accounts for a large chunk of Nigeria’s forex demand, would naturally strengthen the local currency.
Dangote’s prediction aligns closely with the views of his close associate and fellow billionaire, Femi Otedola. Just days prior, the Chairman of First HoldCo had projected that the naira could trade below N1,000 to $1 before the end of the year.
Otedola had described the refinery’s ramp-up to full capacity as a “turning point” for Nigeria’s macroeconomic outlook, noting that the facility’s ability to supply up to 75 million litres of Premium Motor Spirit (PMS) daily would drastically cut the country’s import bill.
The naira has faced severe volatility in recent years, trading well above N1,500 to the dollar in various markets. However, the commencement of domestic refining is seen by many analysts as the most significant structural fix to Nigeria’s currency woes.
With the refinery now placing products in the local market and planning exports to West and East Africa, the expectation is that Nigeria will transition from a net importer to a net exporter of refined petroleum products, fundamentally altering the supply-demand dynamics of the foreign exchange market.
